Struggling to Make Student Loan Payments? These Tips To Repay Your Student Loans Can Help

15-Jul-2011 The last thing a recent college graduate wants to do is seek out the services of Chicago bankruptcy lawyers. But with the current job market some grads are finding it hard to secure a full-time job.

For former students whose loans have kicked in it's very important to know that when filing chapter 7 Chicago, student loans will not be discharged.

In fact student loans are similar to back taxes and child support and alimony in that they will not be removed from your responsibility through bankruptcy. So if the only debt you're struggling with is student loans then chapter 7 bankruptcy in Chicago is not the solution for you.

In a recent column by Terry Savage in the Chicago Sun Times she answers the student loan question of a recent graduate's family. Additionally, she supplies them with these 3 tips to pay off your loans.

1. Understand what you owe and to whom
Sure, this sounds easy enough but student loans can come in the form of federal loans which are either subsidized or unsubsidized as well as private loans. Loans can also come from a variety of lenders that includes the United States government.
To find out what you owe contact your school's financial aid department or check Federal Student Loans at www.nslds.ed.gov (National Student Loan Data System.)

2. Consolidate
Student loans from the government carry different interest rates. This surprisingly means that if you consolidate them your interest rate may be slightly higher than if you did not. However, if you have never consolidated before you can do so one time at a very low interest rate.
Keep in mind that it will be harder to consolidate private loans and the lenders may be less interested in letting them go because they want the interest.
When you consolidate try to find a payment plan that spans 10 years. You will pay a lot less interest this way. It is also a good tip to never consolidate federal loans into private loans because you won't have as many benefits or options.
For help consolidating visit, www.LoanConsolidation.ed.gov.

3. Take action if you can't pay
If you are struggling financially don't just stop paying your student loans. Ask for help. It may be possible to defer your loans or get a special forbearance, especially if you cannot find work. Savage recommends a income based payment program that can be learned about here: www.IBRinfo.org.
Contact your creditor and the Department of Education. Visit the federal government's website: www.StudentLoans.gov. You will find advice on this site for repayment options.
Don't let the situation get out of control. Student loans do not go away with bankruptcy so you have to find a way to make the payments or defer them until it becomes possible.

Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.